Arturo school using the market mechanism

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The university, in order to prevent the shortage issue, is changing from selling parking permits to charging a daily parking fee. Suppose parking spaces were allocated at Arturo's school using the market mechanism. In this case, students would have to pay $ each day to park.

As his school gets larger, the demand for parking increases to QD = 12,000 - 500P. If Arturo's university wanted to keep the market price (the price of daily parking) the same, it would have to provide more parking spaces.

Reference no: EM133259859

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